South Korea is considering all possible measures to minimse impact of potential Samsung electronics strike.
According to Reuters, South Korean prime minister on Sunday, May 17 said that the country will pursue all options, including emergency arbitration, to avoid a labour strike at the country's biggest employer Samsung Electronics.
The world's largest memory chip maker and its South Korean labour union will resume pay talks on Monday with a government mediator, in a move that could ease concerns over a potentially disruptive strike at the tech giant that accounts for nearly a quarter of the country's exports.
Prime Minister Kim Min-seok said after an emergency meeting, “Just one day of suspension at Samsung Electronics' semiconductor factory is expected to incur direct losses of as much as 1 trillion won ($667.68 million).”
“What is more concerning is that a temporary pause on semiconductor manufacturing lines leads to months of inactivity," Kim said, adding there were worries about economic damage ballooning to as much as 100 trillion won if materials had to be disposed of due to a strike.
An emergency arbitration order, which can be invoked by the labour minister if the country deems a dispute is likely to harm the economy or daily life, immediately prohibits industrial action for 30 days while the National Labor Relations Commission conducts mediation and arbitration.
The union said it would negotiate in good faith to reach an agreement with management.
Samsung accounts for 22.8% of South Korea's exports and 26% of the domestic stock market, employing more than 120,000 people and working with 1,700 suppliers.
